Life 101: Do You Need Excess Insurance?

Yes, we're delving into one of the most boring topics now on CT. However dishwater-dull you consider insurance, the raw truth is that it's a legal requirement to be able to drive your beloved motor in the UK. Oh and you may be liable to prosecution if you are found without (don't try and use any Hot Fuzz excuses).

The first rule of insurance club, is that it's important to identify the different types of car, van and motor home insurance that are available before you decide which one to go for.

Here's a quick primer on excess; car excess insurance is designed to protect the excess you pay on your insurance. This is a fixed amount you have to pay in the event of a claim being made.

If a claim is thought to not be your fault, for example in the event that somebody drives into your car, then the insurance company will not make you pay the excess and will pay for the entire claim. However it is imperative that you check the terms and conditions before you make a claim because insurance policies differ between different companies.

Some companies have compulsory insurance premiums which you cannot get out of paying for. Voluntary excesses are an altogether different matter and only have to be paid if the persons decide to have it added to their policy. The figure for insurance excess will differ depending on the age of the driver, the car design and the type of claim that is made whilst the amount of voluntary excess paid is determined by the applicant – although insurers may impose a minimum figure.

A higher excess is often accompanied by a lower premium but it is worth bearing in mind that this does not always work out for the best. In the event that you make a claim, having a high excess means you’ll have to foot a lot of the bill yourself and if you don’t have the money to do this then you’ll be left in a very difficult situation.

This is where car excess insurance can come in handy – allowing you to benefit from the lower premiums associated with a higher excess level whilst still protecting your future finances. This means that the money you have to pay out for a claim may be reimbursed through this additional protection, making it a worthwhile consideration.

Any questions?

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